Acams CAMS Quiz 10 Topic 3 Questions 46-50

Question: 1

What is operational risk?

AThe potential for loss of public confidence in an organization's integrity

BThe potential for loss resulting from too much credit or loan exposure to one borrower

CThe potential for loss due to inadequate processes, people, systems, or external events

DThe potential for lawsuits, fines, and penalties increasing an organization's expenses

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Question: 2

The Board of Directors and the senior management of a financial institution should ensure that which three are established and followed with regard to an effective AML program?

AThere is a strong compliance program

BInternational guidance is followed and understood

CThey are kept informed of all major AML issues

DRegulatory compliance is made part of all relevant job descriptions

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Question: 3

The marketing department presents a business plan targeting individuals holding important public positions. What are some steps the financial institution should implement as part of the plan to target such individuals?

AInvestigate the source of funds

BDetermine the purpose of the account

CDetermine if the client appears on the Basel Committee on Banking Supervision's list of public officials

DTake all reasonable steps to check the background of the individual based on public information

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Question: 4

In 2004, Consolidated KYC Risk Management was issued by the Basel Committee on Banking Supervision (BCBS). What is a key message in this document?

AKYC Risk Management required a yearly consolidation effort

BKYC Risk Management means as established decentralized process for promulgating policies and procedures

CPolicies and procedures should be designed not merely to comply strictly with all relevant laws and regulations

DConsolidated KYC risk management for a group is critical and trumps jurisdictional rules hat limit information sharing

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Question: 5

What is a key element required to ensure an anti-money laundering compliance program is effectively embedded into an institution's culture?

AAn internal audit

BOngoing training

CPeer review

DA record retention policy

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Acams CAMS Quiz:10 Topic:3 Questions:46-50